VONAGE

VONAGE

A settlement with VONAGE, one of the nation’s largest providers of a service known as “Voice over Internet Protocol”, an Internet-based phone service. Consumers allegedly had difficulty cancelling service or were unable to cancel their VONAGE service.

The company agreed to make significant changes to its marketing practices, honor consumer cancellation requests, and provide refunds to eligible consumers. VONAGE formerly paid incentives to customer service representatives for retaining customers when consumers called to cancel. The agreement puts strict limitations on this practice and requires recording and verification of these telephone calls.

The agreement also addresses a number of marketing practices, which may have confused consumers about VONAGE equipment and service. Specifically, VONAGE will be revising its disclosures regarding the offer of “free” services, money-back guarantees and trial periods. VONAGE has also agreed to make refunds to eligible consumers who filed complaints regarding unauthorized charges from January 2004 to March 9, 2010, which have not been resolved